Beginning inventory, purchases and sales data for tennis rackets are as follows:
ID: 2470667 • Letter: B
Question
Beginning inventory, purchases and sales data for tennis rackets are as follows: Apr. 03 Inventory 20 units $15.00 Apr. 11 Purchase 18 units $19.00 Apr. 14 Sale 10 units Apr. 21 Purchase 13 units $20.00 Apr. 25 Sale 15 units Assuming the business maintains a perpetual inventory system, calculate the cost of merchandise sold and ending inventory under First-in, first-out. Select the correct answer:
1-cost of merchandise sold $395.00 ending inventory $902.00
2-cost of merchandise sold $902.00 ending inventory $507.00
3-cost of merchandise sold $395.00 ending inventory $507.00
4-cost of merchandise sold $507.00 ending inventory $395.00
???
Explanation / Answer
3-cost of merchandise sold $395.00 ending inventory $507.00 FIFO Date Particulars Units Cost Amount COGS 3-Apr Beginning 20.00 15.00 300.00 11-Apr Purchase 18.00 19.00 342.00 Total 38.00 642.00 14-Apr COGS 10.00 150.00 10*15 Balance 28.00 492.00 21-Apr Purchase 13.00 20.00 260.00 Total 41.00 752.00 25-Apr COGS 15.00 245.00 10*15 + 5*19 Ending inventory 26.00 507.00 COGS 395.00 Closing Stock 507.00
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.